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2016 (5) TMI 1439 - ITAT PUNELevy of penalty u/s 271(1)(c) - not coming to the conclusion as to the proper limb, which has not been satisfied for issuing notice - Held that:- Penalty proceedings have been initiated in respect of additional income offered. AO had recorded satisfaction that the assessee has concealed its income but had levied penalty on account of concealment of income by furnishing inaccurate particulars of income. Such an order imposing concealment penalty is not sustainable for not coming to the conclusion as to the proper limb, which has not been satisfied. In respect of second set of penalty i.e. unexplained investment in jewellery and on account of on-money received, penalty proceedings were initiated without mentioning the limb which has not been satisfied by the assessee and penalty has been levied for violation of both the limbs of section and such order imposing concealment penalty is not sustainable and hence, the same is held to be invalid in law. We direct the Assessing Officer to delete penalty levied under section 271(1)(c) of the Act in all the years under appeal. - Decided in favour of assessee.
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